Oil holds gains as Russian output falls below OPEC+
Oil prices steadied after posting their largest gain in nearly four weeks, as concerns over tighter Russian crude supply outweighed worries about the impact of President Donald Trump’s expanding tariffs.
Brent futures were near $76 a barrel after closing 1.6% higher on Monday, while West Texas Intermediate traded above $72 following a two-day gain, News.Az reports, citing Bloomberg.
Russian data showed production last month slipped further below the nation’s OPEC+ quota, according to people familiar with the figures.
Oil has had a rocky start to the year, initially rising on higher heating demand due to a cold Northern Hemisphere winter and US sanctions on Russia’s crude industry. However, prices have declined the past three weeks as Trump’s tariff regime has threatened trade wars on multiple fronts.
The US president most recently ordered a 25% tariff on all US aluminum and steel imports, including from Canada and Mexico, the country’s top two foreign suppliers. The levies take effect on March 12, and Trump said they “may go higher,” casting the effort to help bolster domestic production.
Trump has also said Israel should call off its ceasefire agreement with Hamas if hostages aren’t returned this weekend, risking another escalation of hostilities. Both have accused each other of violating the terms of the deal.
There are signs of tightness in some corners of the market, notably in the Middle East, where the broader curtailment of competing flows has meant that producers in the region have been able to raise prices for their main Asian customers. In Europe, soaring natural gas prices has made it more cost-effective to burn oil, which could potentially lead to a demand boost.
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